Vietnam's Yeah1 dissolves subsidiary as first-half profit drops nearly 50%

Yeah1 is one of Vietnam's leading media and entertainment groups, best known as the production company behind hit reality shows such as "Chi Dep Dap Gio Re Song" (the Vietnamese adaptation of China's Sisters Who Make Waves) and "Anh Trai Vuot Ngan Chong Gai" (Call Me by Fire).

Subsidiary dissolved as restructuring continues

Yeah1's board of directors approved a resolution on August 5 to dissolve Yeah1 Superstar JSC, a subsidiary in which the group owns a 50.98 percent stake.

The company said the dissolution is intended to streamline its subsidiary structure, improve operational efficiency and focus resources on core business priorities.

The dissolution is expected to be completed this month.

Yeah1 authorized its capital representative at the subsidiary to carry out shareholder procedures related to the dissolution.

According to Vietnam's National Business Registration Portal, Yeah1 Superstar was established in March 2020 in Ho Chi Minh City and operates mainly in advertising services.

The restructuring follows Yeah1's recent divestment of Tstudio JSC, which generated nearly VND35 billion (US$1.34 million) in financial income in the second quarter.

Tstudio is no longer consolidated into Yeah1's financial statements following the sale.

The restructuring comes as the company faces pressure to improve operating performance after a weak first half of the year.

Core business weakens

Yeah1 reported first-half net revenue of VND519.4 billion ($19.9 million), down 23.3 percent from a year earlier, according to its consolidated financial statements.

After-tax profit fell 49 percent year on year to VND30.3 billion ($1.16 million).

Advertising and media remained the group's largest business segment, generating VND430 billion ($16.5 million), down 24.2 percent from the same period last year.

Revenue from content licensing, consulting and rights exploitation reached VND86.6 billion ($3.3 million).

Service revenue totaled VND2.7 billion ($103,000).

Revenue from merchandise sales and other activities amounted to less than VND200 million ($7,600).

Second-quarter results weakened further as net revenue declined 32 percent year on year to VND311 billion ($11.9 million).

Gross profit dropped 74 percent to VND13.2 billion ($505,000).

The gross profit margin narrowed to 4.2 percent from 11 percent a year earlier.

Gross profit was insufficient to cover selling and administrative expenses of VND25.7 billion ($984,000), indicating continued pressure on the company's core business.

Yeah1 posted second-quarter after-tax profit of VND15.6 billion ($597,000).

The profit was driven primarily by financial income rather than operating activities.

Financial income rose nearly fourfold from a year earlier to VND42.5 billion ($1.63 million).

Most of the financial income came from the nearly VND35 billion gain on the disposal of Tstudio.

Yeah1 said revenue and profit declined because it was investing in new television programs and entertainment intellectual property during the initial development stage.

The company also said concert-related projects made only a limited contribution to first-half revenue.

Yeah1 targets consolidated revenue of VND1.65 trillion ($63.2 million) and after-tax profit of VND105 billion ($4 million) for 2026.

The targets imply broadly flat revenue and more than 35 percent growth in after-tax profit from 2025.

After six months, the company had completed 31 percent of its annual revenue target and 29 percent of its profit target.

Yeah1 said new entertainment programs, including the second season of Anh Trai Vuot Ngan Chong Gai and its accompanying concert series, are expected to drive growth in the second half of the year.